Credit risk in bank and how to mitigate the risks of Bank Asia Limited

This internship report is submitted in a partial fulfillment of the requirements for the degree of Bachelor of Business Administration,2013.Cataloged from PDF version of Internship report.Includes bibliographical references (page 43).Risk is the element of uncertainty or possibility of loss that prevail in any business transaction in any place, in any mode and at any point of time. In the banking sector, risks can be broadly categorized as Credit Risk, Operational Risk, Market Risk and Other Risks. Credit risk is the possibility that a borrower or counter party will fail to meet agreed obligations. Globally, more than 50% of total risk elements in banks and financial institutions are credit risk alone. Thus managing credit risk for efficient management of banks has gradually become the most crucial task. The banking system which constitutes the core of the financial sector of any country plays a critical role in transmitting monetary policy impulses to the entire economic system. Banking is a business built on risk. Yet, it is essential to manage and minimize that risk. The paper will discuss some critical issues involved in managing those risks with special focus on the credit risk management of Bank Asia Ltd. The first section of this paper consists of an “Introductory” part of this report, which has been developed for the proper execution of the entire report and also a brief description about the host organization of my internship, Bank Asia Ltd, has been given. The second part consists of the “Duties and responsibilities performed during the Internship”. The third section includes the “Project Work”. The project work is divided into 3 segments-summary of the work, credit risk grading and credit risk management of Bank Asia ltd. To sum up the report, there are few findings & suggestions and ending up with the conclusion.Rushdi Md. Raihanul IslamB. Business Administratio